Recently, during a session of the University
of Michigan's Advanced Human
Resource Executive Education program where I teach, there was a great discussion
about how the human resource/human capital function is perceived by CEOs. The
group was quite diverse, with attendees from around the world operating at the
senior level of mostly large organizations. Their diversity was also reflected
in the views they expressed about how their CEO perceived them.

The starting point for the conversation was
my statement that HR executives should be mindful that many CEOs don't
understand what the HR executive does on a daily basis. Since it's still
statistically rare for the head of HR to become CEO, most CEOs don't gain an
understanding of HR by doing HR, but by being a consumer of the function's
services -- and their opinions may have largely been informed by the type of HR
function they grew up with.

I believe it's critical for HR executives to
understand this because it means the function has a higher hurdle to overcome
in demonstrating its business acumen to the CEO. Maybe it isn't fair or
shouldn't be necessary. But it's true. Those who know and understand the business
as well as every other member of the executive team -- and are demonstrating it
-- will thrive. Those who don't, won't.

Some of the class felt that their CEO has a
deep understanding and appreciation of the function and its contribution. They
didn't see a higher hurdle because they were already true partners in running
the business. They felt it was time for the profession to stop wringing its
hands and worrying about how it's perceived, and get on with the business of
adding value to organizations.

Others had a different experience. They had
worked within organizations where HR was not able to add value because it was
unable to overcome the way in which the function was perceived. The CEO and/or
top executives only had experience with a transactional HR function; the
executives not only didn't expect, but resisted efforts from HR to add value in
other ways.

My purpose in sharing this story is to
highlight the fact that the human resource (or human capital -- your choice)
function has made great progress in many organization, but still has far to go
in others.

And while I am sick and tired of HR
professionals wringing their hands and worrying about how to "get a seat
at the table" -- please, please, stop asking this question! -- I think
it's important to examine the state of the function and search for ways to
improve it. While sometimes it's painful, any function -- not just HR -- should
continually assess and reassess its performance and identify opportunities for
improvement.

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Second, focus-group participants reported
that HR professionals continue to have a "support function mind-set, a low
tolerance for risk, and a limited sense of strategic authorship."

The third challenge identified is the
"inability to relate the ROI or business impact of their function."
This difficulty in speaking the language of business -- being able to
articulate HR's ROI -- keeps the function from getting buy-in for its
initiatives and innovation.

The report highlights that, as with most challenges,
opportunities are created, and these are examined in the report in detail. They
include anticipating the workplace of the future, securing the pipeline of
skilled workers, capitalizing on employee engagement, and ensuring an agile
workforce.

But I think one paragraph best sums the
overarching challenge for the profession:

"The HC function
needs many things, but most of all, it needs daring and a willingness to expand
its reach; take the opportunities offered by changing employee attitudes,
improved technology, and 'big data'; and create real and lasting change in how
top talent is recruited, engaged and retained worldwide."

I know some will be
frustrated to hear about yet one more report that's critical of HR's progress.
And, indeed, I know there are many organizations where HR is having a huge
impact.

But I also know that
every profession, including HR, should continually examine its
challenges and opportunities in its search for continuous improvement. I, for
one, am confident the profession is up to the challenge; we just need the
courage and confidence to embrace it.

Susan R. Meisinger, former president and CEO
of the Society for Human Resource Management, is an author, speaker and
consultant on human resource management. She is on the board of directors of
the National Academy of Human Resources.